In 2021, Exeter University found an unexploded bomb near to one of its halls of residence which had been dropped during World War II. A bomb disposal unit from the army attempted to carry out a controlled explosion but the bomb detonated and damaged a hall of residence. Exeter University claimed against its insurance policy with Allianz for property damage and the costs of re-housing students.
Exeter University argued that the cause of its loss was the controlled detonation of the bomb because any damage ‘occasioned by war’ was excluded under its policy. There was no suggestion that the bomb disposal squad did anything wrong but the attempt to neutralise the bomb caused more damage than anticipated.
The insurer argued that the deployment of the device during World War II was only one cause of the loss. Although the controlled detonation was the most proximate cause of damage, there were still two concurrent causes of the University’s loss, both of which contributed equally to the damage. It is established law that when one cause of a loss is insured and another cause is excluded then, under the so-called Wayne Tank Principle, which derives from a case with the same name, Allianz could decline cover.
The Court of Appeal decided that the amount of time that has passed since the end of World War II did not diminish the fact that the use of the bomb during a conflict led to the loss through a series of events including its discovery by workmen and attempts to defuse it. The failed attempt to neutralise the bomb was a reasonable course of action and the University’s attempt to characterise the cause of the loss as the controlled explosion did not displace the war as a concurrent cause of the damage. As such, the exclusion of war damage took effect and none of the University’s losses were recoverable under the policy.
If you require any advice about the cover available under a policy or have had a claim denied, please contact Alexander Haddad in our litigation department.